The head of Maui Memorial Medical Center leading the privatization efforts of three Maui County hospitals is resigning as of Oct. 31.
Wesley Lo, chief executive of Hawaii Health Systems Corp.’s Maui region, will become CEO of Hale Makua Health Services in Kahului on Dec. 1. Hale Makua operates nursing homes and other post-acute care facilities.
Kaiser Permanente, which was supposed to assume control of Maui Memorial, Kula Hospital & Clinic and Lanai Community Hospital in July, has delayed the largest privatization effort in state history until July 2017 following a number of setbacks, including a lawsuit by United Public Workers to stop the privatization because of existing union contracts that run through June 30 of next year. Gov. David Ige’s administration has been unable to finalize supplemental agreements with the public worker unions to change the contracts, even though the state settled the UPW lawsuit last month.
“I had every intention of completing this transition, but with the newest delay pushing the transition date to July 2017, I couldn’t pass up this opportunity with Hale Makua. It is totally bittersweet,” Lo said. “More than anything else, I credit the people I’ve worked with in the Maui region with so much. Health care is too often a thankless job and I hope the people on Maui realize how fortunate they are to have this high level of knowledge, care and commitment working on their behalf.”
The delays have been challenging for the community and Maui hospitals, which are looking to cut services and reduce capacity, Lo said.
“We deserve to see this transition happen in a timely manner,” he said. “The delays are not solving anything. We pursued this transition to improve health care for our community and I’m hopeful that the community’s needs and voices are heard to ensure a timely transition.”
The Hawaii Employees’ Retirement System also filed a lawsuit on Aug. 9 to block a law providing severance benefits to roughly 1,500 Maui County hospital workers. An Oahu Circuit Court judge issued a temporary retraining order on Aug. 23 until the court can consider an ERS request for a preliminary injunction in the case.
Lo started 13 years ago as the Maui region’s chief financial officer and became chief operating officer in May 2004. By September of that year, he was named regional chief executive officer.
Under his leadership, the region expanded Maui Memorial, adding the Kahului tower and Maui Outpatient Clinic, opened a 24-hour cardiovascular services program and gained more autonomy over its resources.
“Wes has been an excellent resource to this region, his commitment to patient safety and his commitment to and relationship with all staff has allowed us all to steer through difficult times,” said Avery Chumbley, HHSC Maui region board chairman, in a news release. “In light of some difficult challenges facing the Maui region, Wes’ temperament and leadership allowed us to focus on the larger issues. His shoes will be difficult to fill.”
The Maui region immediately will begin a search for a new CEO.